for the Year Ended Ma
arch 31, 2
2014, andd Independent Aud
ditor's Re
eport

EIZO Corpora
ation andd Subsid
diariesFinancial Highlights
Thousands ofMillions of Yen

U.S. Dollars

2012

2013

2014

2014

Net sales

59,55958,27073,642

721,980

Operating income

4,405

2,057

6,834

66,999Net income

1,637

1,598

5,438

53,314

Total assets

77,032

79,36892,932

911,098

Total equity

57,67861,432

69,202

678,451

Years ended March 31:

As of March 31:

Per share information

Yen

U.S. Dollars

Basic net income

74.08

74.96

255.05

2.50

Cash dividends applicable to the year

50.00

50.00

55.00

0.54

Note: U.S. dollar amounts are provided solely for convenience at the rate of ¥102 to US$1, the approximate exchange rate at March 31, 2014

(Millions of Yen)

Net Sales

Operating Income
73,64259,559Net Income

6,834

58,270

5,438
4,405

2,057

2012

2013

2014

Total Assets/
Total Equity

2012

2013

2014

1,637

1,598

2012

2013

Net Salesby Products

2014

Monitor for Computer Use
Amusement Monitor
Other

92,932
77,032

79,36869,202

57,67861,432

7,403,
12.4%

31,611,
53.1%

Total 59,559
20,545,
34.5%

2013

2014

41,620,56.5%

30,690,52.7%

Total 73,642

Total 58,270
21,966,29.8%

18,074,
31.0%

2012
2012

10,056,13.7%

9,506,
16.3%

2013

2014

EIZO Corporation and Subsidiaries
Consolidated Balance Sheet
March 31, 2014

Millions of Yen
2014
2013

ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Note 11)
Short-term investments (Notes 3 and 11)
Notes and accounts receivables (Note 11):
Trade notes
Trade accounts
Other
Allowance for doubtful receivables
Inventories (Note 4)
Deferred tax assets (Note 8)
Prepaid expenses and other current assets
Total current assets
PROPERTY, PLANT, AND EQUIPMENT:Land (Note 5)
Buildings and structures (Note 5)
Machinery and equipment
Furniture and fixtures
Construction in progress
Total
Accumulated depreciation
Net property, plant, and equipment
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 3 and 11)
Goodwill
Deferred tax assets (Note 8)
Other assets
Total investments and other assets

Thousands of
U.S. Dollars(Note 1)
2014

¥ 19,081200¥ 16,138$ 187,069
1,961

268
14,615124(118 )
25,375
1,866
451

191
12,120567(90 )
20,756
1,775
574

2,627
143,284
1,216(1,157 )248,775
18,294
4,421

61,86252,031

606,490

2,824
11,475
3,851
4,852
19
23,021(14,830 )2,947
11,592
3,712
4,136
6
22,393(14,329 )

27,686
112,500
37,75547,569186
225,696(145,392 )

8,191

8,064

80,304

19,453
786
300
2,340

15,045
857
297
3,074

190,716
7,706
2,941
22,941

22,87919,273

224,304

LIABILITIES AND EQUITYCURRENT LIABILITIES:
Accounts payable (Note 11):
Trade accounts
Other
Income taxes payable
Accrued expenses
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:
Liability for retirement benefits (Note 6)
Deferred tax liabilities (Note 8)
Other long-term liabilities
Total long-term liabilities¥ 92,932¥ 79,368

¥

7,198
1,707
1,906
3,543
1,456

¥

6,054
1,661
434
3,241
558

$

70,56916,735
18,686
34,735
14,275

15,81011,948155,000

2,713
3,796
1,411

2,261
2,259
1,468

26,59837,216
13,833

7,920

5,988

77,6474,426
4,314
54,0444,426
4,314
49,672

43,39242,294
529,843(2,661 )(2,661 )(26,088 )

9,162

6,364
8
(691 )

89,824

69,202

61,432

678,451¥ 92,932¥ 79,368$ 911,098

COMMITMENTS AND CONTINGENT LIABILITIES(Notes 10 and 12)
EQUITY (Notes 7 and 14):
Common stock—authorized, 65,000,000 shares;
issued, 22,731,160 shares in 2014 and 2013
Capital surplus
Retained earnings
Treasury stock—at cost, 1,410,245 shares in 2014 and
1,410,166 shares in 2013
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustments
Defined retirement benefit plans
Total equity

TOTAL

Millions of Yen
2014
2013

Thousands of
U.S. Dollars(Note 1)
2014

TOTAL

$ 911,098

See notes to consolidated financial statements.

-2-

153
(236 )

1,500(2,314 )EIZO Corporation and Subsidiaries
Consolidated Statement of Income
Year Ended March 31, 2014

Millions of Yen
2014
2013
NET SALES

Thousands of
U.S. Dollars(Note 1)
2014

¥ 73,642¥ 58,270$ 721,980

50,42640,927494,373

23,216

17,343

227,607

SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES (Notes 9 and 10)

16,382

15,286160,608

Operating income

6,834

2,057

66,999

260
948
17

246
860

2,549
9,294
167

COST OF SALES (Notes 9 and 10)
Gross profit

OTHER INCOME (EXPENSES):Interest and dividend income
Foreign exchange gain—net
Gain on sales of investment securities (Note 3)
Loss on valuation of investment securities
Loss on impairment of fixed assets (Note 5)
Other—net

(28 )
(44 )

(27 )
(181 )
(61 )

1,153

837

11,305

INCOME BEFORE INCOME TAXES

7,987

2,894

78,304

INCOME TAXES (Note 8):
Current
Deferred

2,475
74

1,070
226

24,265
725

2,549

1,296

24,990

Other income—net

Total income taxes
NET INCOME

¥

5,438

¥

1,598

Yen
PER SHARE OF COMMON STOCK (Note 2.r):Basic net income
Cash dividends applicable to the year

¥ 255.05
55.00

See notes to consolidated financial statements.

-3-(275 )(430 )$

53,314

U.S. Dollars¥ 74.9650.00$ 2.500.54

EIZO Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income
Year Ended March 31, 2014

Millions of Yen
2014
2013
NET INCOME

Thousands of
U.S. Dollars(Note 1)
2014

¥ 5,438¥ 1,598$ 53,314

OTHER COMPREHENSIVE INCOME (Note 13):
Unrealized gain on available-for-sale securities
Deferred (loss) gain on derivatives under hedge accounting
Foreign currency translation adjustments

2,798
(8 )
844

2,481
8
732

27,430(78 )8,275

Total other comprehensive income

3,634

3,221

35,627COMPREHENSIVE INCOME¥ 9,072¥ 4,819$ 88,941

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO—
Owners of the parent company¥ 9,072¥ 4,819$ 88,941

See notes to consolidated financial statements.

-4-

EIZO Corporation and Subsidiaries
Consolidated Statement of Changes in Equity
Year Ended March 31, 2014

BALANCE, APRIL 1, 2012

Thousands
Number of
Shares ofCommonStock
Outstanding

CommonStockCapitalSurplusRetained
Earnings

TreasuryStock21,321¥ 4,426¥ 4,314¥ 49,139¥ (2,661 )Net income
Cash dividends, ¥50 per share
Net increase in unrealized gain on available-for-sale securities
Net change in deferred gain on derivatives under hedge accounting
Net change in foreign currency translation adjustments
BALANCE, MARCH 31, 2013

1,598
(1,065 )21,321

4,426

4,314

Net income
Cash dividends, ¥50 per share
Net increase in unrealized gain on available-for-sale securities
Net change in deferred gain on derivatives under hedge accounting
Net change in foreign currency translation adjustments
Effect of accounting change (Note 2.j)
BALANCE, MARCH 31, 2014

BALANCE, MARCH 31, 2013

21,321¥ 4,426¥ 4,314¥ 54,044(2,661 )¥ (2,661 )CapitalSurplusRetained
Earnings

TreasuryStock$ 43,392$ 42,294$ 486,980$ (26,088 )

53,314(10,451 )$ 42,294

See notes to consolidated financial statements.

-5-$ 529,843

6,364

Total
Equity¥ (1,423 )¥ 57,678

732

1,598
(1,065 )
2,481
8
732

(691 )

61,432¥88¥ (236 )153¥ (236 )¥ 69,202

Thousands of U.S. Dollars (Note 1)
Accumulated Other Comprehensive Income
Unrealized
Deferred Gain
Foreign
Gain onon Derivatives
Currency
Available-forunder Hedge
Translation
Sale Securities
Accounting
Adjustments

DefinedRetirement
Benefit
Plans

Total
Equity(8 )¥ 9,162$ 62,394

27,430$ (26,088 )DefinedRetirement
Benefit
Plans

5,438
(1,066 )
2,798
(8 )
844
(236 )

2,798

CommonStock$ 43,392¥ 3,883

2,481

5,438
(1,066)

Net income
Cash dividends, $0.49 per share
Net increase in unrealized gain on available-for-sale securities
Net change in deferred gain on derivatives under hedge accounting
Net change in foreign currency translation adjustments
Effect of accounting change (Note 2.j)
BALANCE, MARCH 31, 2014

49,672Millions of Yen
Accumulated Other Comprehensive Income
Unrealized
Deferred Gain
Foreign
Gain onon Derivatives
Currency
Available-forunder Hedge
Translation
Sale Securities
Accounting
Adjustments$ 89,824

844
¥

$ 78

(78 )

$ (6,775 )8,275$ 1,500$ 602,275$ (2,314 )

53,314(10,451 )
27,430(78 )
8,275(2,314 )$ (2,314 )$ 678,451

EIZO Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2014

OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of goodwill
Provision of allowance for doubtful receivables
Foreign exchange gain—net
Loss on impairment of long-lived assets
Loss on valuation of investment securities
Changes in assets and liabilities:(Increase) decrease in notes and accounts receivable
Increase in inventories
Increase (decrease) in accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in liability for retirement benefits
Other—net
Total adjustments¥

Millions of Yen
2014
2013

Thousands of
U.S. Dollars(Note 1)
2014

7,987

$

¥

2,894

78,304(1,096 )
1,480
208
21
(637 )
28(1,691 )
1,188
165
17
(425 )
181
27(10,745 )
14,5102,039
206(6,245 )275(1,681 )(3,430 )
558
173
123
952
(3,301 )

4,588(2,081 )(2,218 )(362 )(61 )(85 )(757 )(16,480 )(33,627 )
5,471
1,696
1,206
9,332
(32,362 )

4,686

2,137

45,942(1,076 )(366 )(270 )(1,337 )(10,549 )(3,588 )50(200 )
384

9(601 )
8490(1,961 )
3,763(1,208 )(2,191 )(11,845 )(1,066 )(1,067 )(10,451 )Net cash used in financing activities(1,066 )(1,067 )(10,451 )FOREIGN CURRENCY TRANSLATION ADJUSTMENT ON
CASH AND CASH EQUIVALENTS

531

545

5,207

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

2,943(576 )

28,853

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

16,138

16,714

158,216¥ 19,081¥ 16,138$ 187,069

Net cash provided by operating activities
INVESTING ACTIVITIES:
Purchases of property, plant, and equipment
Purchases of software and other long-lived assets
Proceeds from sales of short-term investments andinvestment securities
Purchases of short-term investments and investment securities
Decrease in other assets
Net cash used in investing activities
FINANCING ACTIVITIES—Dividends paid

CASH AND CASH EQUIVALENTS, END OF YEAR
See notes to consolidated financial statements.

-6-

EIZO Corporation and Subsidiaries
Notes to Consolidated Financial Statements
Year Ended March 31, 2014

1.

BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forthin the Japanese Financial Instruments and Exchange Act and its related accounting regulations and in accordancewith accounting principles generally accepted in Japan ("Japanese GAAP"), which are different in certain respects
as to the application and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to
the consolidated financial statements issued domestically in order to present them in a form that is more familiar toreaders outside Japan. In addition, certain reclassifications have been made in the 2013 consolidated financial
statements to conform to the classifications used in 2014.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which EIZO
Corporation (the "Company") is incorporated and operates. The translations of Japanese yen amounts into U.S.
dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of¥102 to $1, the approximate rate of exchange at March 31, 2014. Such translations should not be construed as
representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation—The consolidated financial statements as of March 31, 2014, include the accounts of theCompany and its 15 (15 in 2013) subsidiaries (together, the "Group").
Under the control concept, those companies in which the Company, directly or indirectly, is able to exercise
control over operations are fully consolidated.
All significant intercompany balances and transactions have been eliminated in consolidation. All material
unrealized profit included in assets resulting from transactions within the Group is also eliminated.

b.

Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial
Statements—In May 2006, the Accounting Standards Board of Japan (the "ASBJ") issued ASBJ Practical
Issues Task Force ("PITF") No. 18, "Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for the Consolidated Financial Statements." PITF No. 18 prescribes that the accounting
policies and procedures applied to a parent company and its subsidiaries for similar transactions and events
under similar circumstances should in principle be unified for the preparation of the consolidated financial
statements. However, financial statements prepared by foreign subsidiaries in accordance with either
International Financial Reporting Standards or generally accepted accounting principles in the United States ofAmerica tentatively may be used for the consolidation process, except for the following items should be
adjusted in the consolidation process so that net income is accounted for in-7-

accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled
amortization of actuarial gain or loss of pensions that has been directly recorded in equity; (c) expensing
capitalized development costs of research and development ("R&D"); (d) cancellation of the fair value modelof accounting for property, plant, and equipment and investment properties and incorporation of the cost modelof accounting; and (e) exclusion of minority interests from net income, if included.
c.

Business Combination—In October 2003, the Business Accounting Council issued a Statement of Opinion,"Accounting for Business Combinations," and in December 2005, the ASBJ issued ASBJ Statement No. 7,"Accounting Standard for Business Divestitures," and ASBJ Guidance No. 10, "Guidance for AccountingStandard for Business Combinations and Business Divestitures."
The accounting standard for business combinations allowed companies to apply the pooling-of-interests
method of accounting only when certain specific criteria are met such that the business combination isessentially regarded as a uniting-of-interests. For business combinations that do not meet theuniting-of-interests criteria, the business combination is considered to be an acquisition and the purchasemethod of accounting is required. This standard also prescribes the accounting for combinations of entities
under common control and for joint ventures.
In December 2008, the ASBJ issued a revised accounting standard for business combinations, ASBJ Statement
No. 21, "Accounting Standard for Business Combinations." Major accounting changes under the revised
accounting standard are as follows: (1) The revised standard requires accounting for business combinations
only by the purchase method. As a result, the pooling-of-interests method of accounting is no longer allowed.
(2) The previous accounting standard required R&D costs to be charged to income as incurred. Under therevised standard, in-process R&D (IPR&D) costs acquired in a business combination are capitalized as anintangible asset. (3) The previous accounting standard provided for a bargain purchase gain (negative
goodwill) to be systematically amortized over a period not exceeding 20 years. Under the revised standard, theacquirer recognizes the bargain purchase gain in profit or loss immediately on the acquisition date after
reassessing and confirming that all of the assets acquired and all of the liabilities assumed have been identified
after a review of the procedures used in the purchase price allocation. The revised standard was applicable tobusiness combinations undertaken on or after April 1, 2010.

d.

Cash Equivalents—Cash equivalents are short-term investments that are readily convertible into cash and thatare exposed to insignificant risk of changes in value.
Cash equivalents include time deposits, certificates of deposit, and commercial paper, all of which mature or
become due within three months of the date of acquisition.

e.

Inventories—Inventories are stated at the lower of cost, determined by the average method for finishedproducts and work in progress and by the moving-average method for raw materials, or net selling value.

f.

Short-Term Investments and Investment Securities—Short-term investments and investment securities areclassified and accounted for depending on management's intent. Available-for-sale securities, which represent
securities not classified as either trading securities or held-to-maturity debt securities, are reported at fairvalue, with unrealized gains and losses, net of applicable taxes, reported as a separate component of equity.
The cost of available-for-sale securities sold is determined based on the moving-average method.

-8-

Nonmarketable available-for-sale securities are stated at cost determined by the moving-average method.
For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by acharge to income.
g.

Property, Plant, and Equipment—Property, plant, and equipment are stated at cost. Depreciation of property,
plant, and equipment of the Company and its domestic subsidiaries is computed substantially by the
declining-balance method at rates based on the estimated useful lives of the assets, while the straight-line
method is applied to buildings of the Company and its domestic subsidiaries acquired after April 1, 1998, andall property, plant, and equipment of foreign subsidiaries. The range of useful lives is principally from 15 to 50
years for buildings and structures, from 7 to 10 years for machinery and equipment, and from 2 to 6 years forfurniture and fixtures.

h.

Goodwill—Goodwill is amortized over 10 years by the straight-line method. Immaterial goodwill may becharged entirely to income at acquisition. Amortization of goodwill was ¥208 million ($2,039 thousand) and¥165 million for the years ended March 31, 2014 and 2013, respectively.

i.

Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes incircumstances indicate the carrying amount of an asset or asset group may not be recoverable. An impairment
loss is recognized if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future
cash flows expected to result from the continued use and eventual disposition of the asset or asset group. The
impairment loss would be measured as the amount by which the carrying amount of the asset exceeds its
recoverable amount, which is the higher of the discounted cash flows from the continued use and eventual
disposition of the asset or the net selling price at disposition.

j.

Retirement and Pension Plans—The Company and certain of its domestic subsidiaries have a defined
contribution pension plan and unfunded retirement benefit plans. Other domestic subsidiaries have a defined
benefit pension plan and unfunded retirement benefit plans. Certain foreign subsidiaries have either a defined
contribution plan or defined benefit plan. Additionally, the Company or its subsidiaries may add premium
severance pay.
The Group accounted for the liability for retirement benefits based on the projected benefit obligations andplan assets at the consolidated balance sheet date.
The projected benefit obligations are attributed to periods on a straight-line basis. Actuarial gains and losses
are amortized on a straight-line basis over 5 years within the average remaining service period.
In May 2012, the ASBJ issued ASBJ Statement No. 26, "Accounting Standard for Retirement Benefits" andASBJ Guidance No. 25, "Guidance on Accounting Standard for Retirement Benefits," which superseded theprevious accounting standard for retirement benefit originally issued in 1998 and subsequent relevant
amendments. The following is major change from the previous standard.
(a) Under the revised accounting standard, the remaining actuarial gains and/or losses and/or past service
costs that had been yet to be recognized in profit or loss at the end of this fiscal year are collectively
recognized as accumulated other comprehensive income in equity after adjusting for tax effects. This
lump sum recognition does go through other comprehensive income, rather adjusts the beginning balanceof accumulated other comprehensive income in equity.

-9-(b) The revised accounting standard also made certain amendments relating to the method of attributing
expected benefit to periods and relating to the discount rate and expected future salary increases.
This accounting standard and the guidance for (a) above are effective for the end of annual periods beginningon or after April 1, 2013, and for (b) above are effective for the beginning of annual periods beginning on orafter April 1, 2014, or for the beginning of annual periods beginning on or after April 1, 2015, subject tocertain disclosure in March 2015, both with earlier application being permitted from the beginning of annual
periods beginning on or after April 1, 2013. However, no retrospective application of this accounting standard
to consolidated financial statements in prior periods is required.
The Company applied the revised accounting standard and guidance for retirement benefits for (a) above,effective March 31, 2014. As a result, liability for retirement benefits of ¥2,713 million ($26,598 thousand)was recorded as of March 31, 2014, and accumulated other comprehensive income for the year ended March
31, 2014, decreased by ¥236 million ($2,314 thousand).
Retirement benefits to directors and Audit & Supervisory Board members are recorded at the amount thatwould be required if all directors and Audit & Supervisory Board members retired at the consolidated balance
sheet date. In June 2004, the retirement benefit system was abolished and the amount required to be paid at thetime of the abolishment will be paid to directors and Audit & Supervisory Board members upon theirretirement.
k.

Asset Retirement Obligations—In March 2008, the ASBJ issued ASBJ Statement No. 18, "AccountingStandard for Asset Retirement Obligations," and ASBJ Guidance No. 21, "Guidance on Accounting Standard
for Asset Retirement Obligations." Under this accounting standard, an asset retirement obligation is defined asa legal obligation imposed either by law or contract that results from the acquisition, construction,
development, and normal operation of a tangible fixed asset and is associated with the retirement of suchtangible fixed asset. The asset retirement obligation is recognized as the sum of the discounted cash flows
required for the future asset retirement and is recorded in the period in which the obligation is incurred if areasonable estimate can be made. If a reasonable estimate of the asset retirement obligation cannot be made in
the period the asset retirement obligation is incurred, the liability should be recognized when a reasonableestimate of the asset retirement obligation can be made. Upon initial recognition of a liability for an asset
retirement obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related
fixed asset by the amount of the liability. The asset retirement cost is subsequently allocated to expense
through depreciation over the remaining useful life of the asset. Over time, the liability is accreted to its
present value each period. Any subsequent revisions to the timing or the amount of the original estimate ofundiscounted cash flows are reflected as an increase or a decrease in the carrying amount of the liability andthe capitalized amount of the related asset retirement cost.

l.

R&D Costs—R&D costs are charged to income as incurred.

m. Software Development Contracts—In December 2007, the ASBJ issued ASBJ Statement No. 15, "AccountingStandard for Construction Contracts," and ASBJ Guidance No. 18, "Guidance on Accounting Standard forConstruction Contracts."- 10 -

Under this accounting standard and guidance, revenue from sales of customized software and costs ofdevelopment of the customized software should be recognized by the percentage-of-completion method if theoutcome of a development contract can be estimated reliably. When total revenue, total costs, and the stage ofcompletion of the contract at the consolidated balance sheet date can be reliably measured, the outcome of adevelopment contract can be estimated reliably. If the outcome of a development contract cannot be reliably
estimated, the completed contract method should be applied. When it is probable that the total costs will
exceed total revenue, an estimated loss on the contract should be immediately recognized by providing for aloss on development contracts.
n.

Income Taxes—The provision for income taxes is computed based on the pretax income included in the
consolidated statement of income. The asset and liability approach is used to recognize deferred tax assets andliabilities for the expected future tax consequences of temporary differences between the carrying amounts andthe tax bases of assets and liabilities. Deferred taxes are measured by applying currently enacted tax laws to
the temporary differences.
The Group files a tax return under the consolidated corporate tax system in Japan, which allows companies tobase tax payments on the combined profits or losses of the parent company and its wholly owned domestic
subsidiaries.

o.

Foreign Currency Transactions—All short-term and long-term monetary receivables and payables
denominated in foreign currencies are translated into Japanese yen at the exchange rates at the consolidatedbalance sheet date. The foreign exchange gains and losses from translation are recognized in the consolidated
statement of income to the extent that they are not hedged by forward exchange contracts.

p.

Foreign Currency Financial Statements—The balance sheet accounts of the foreign subsidiaries aretranslated into Japanese yen at the current exchange rate as of the balance sheet date, except for equity, which
is translated at the historical rate.
Differences arising from such translation were shown as "Foreign currency translation adjustments" underaccumulated other comprehensive income as a separate component of equity.
Revenue and expense accounts of foreign subsidiaries are translated into Japanese yen at the average exchange
rate.

q.

Derivatives and Hedging Activities—The Group uses derivative financial instruments to manage its exposures
to fluctuations in foreign exchange. Foreign exchange forward contracts are utilized by the Group to reduce
foreign currency exchange risks. The Group does not enter into derivatives for trading or speculative purposes.
Derivative financial instruments are classified and accounted for as follows: (1) all derivatives are recognized
as either assets or liabilities and measured at fair value with gains or losses on derivative transactions
recognized in the consolidated statement of income, and (2) for derivatives used for hedging purposes, if thederivatives qualify for hedge accounting because of high correlation and effectiveness between the hedging
instruments and the hedged items, the gains or losses on derivative are deferred until maturity of the hedgedtransactions.
Foreign currency forward contracts applied for forecasted transactions are measured at fair value, but theunrealized gains or losses are deferred until the underlying transactions are completed.

- 11 -

r.

Per Share Information—Basic net income per share is computed by dividing net income available to commonshareholders by the weighted-average number of common shares outstanding for the period.
Cash dividends per share shown in the consolidated statement of income are presented on an accrual basis, andinclude interim dividends paid and year-end dividends to be approved after consolidated balance sheet date.
Diluted net income per share of common stock is not disclosed herein because the Company has not issued any
securities that are potentially dilutive for the years ended March 31, 2014 and 2013.

s.

3.

Accounting Changes and Error Corrections—In December 2009, the ASBJ issued ASBJ Statement No. 24,"Accounting Standard for Accounting Changes and Error Corrections," and ASBJ Guidance No. 24, "Guidanceon Accounting Standard for Accounting Changes and Error Corrections." Accounting treatments under thisstandard and guidance are as follows: (1) Changes in Accounting Policies—When a new accounting policy isapplied following revision of an accounting standard, the new policy is applied retrospectively, unless therevised accounting standard includes specific transitional provisions, in which case the entity shall comply
with the specific transitional provisions. (2) Changes in Presentation—When the presentation of consolidated
financial statements is changed, prior-period consolidated financial statements are reclassified in accordancewith the new presentation. (3) Changes in Accounting Estimates—A change in an accounting estimate isaccounted for in the period of the change if the change affects that period only, and is accounted forprospectively if the change affects both the period of the change and future periods. (4) Corrections ofPrior-Period Errors—When an error in prior-period consolidated financial statements is discovered, those
consolidated financial statements are restated.

SHORT-TERM INVESTMENTS AND INVESTMENT SECURITIESShort-term investments and investment securities as of March 31, 2014 and 2013, consisted of the following:
Millions of Yen
2014
2013

Thousands of
U.S. Dollars
2014

Short-term investments—Time deposits

¥

200

$

1,961

Total

¥

200

$

1,961

Investment securities:
Marketable equity securities
Nonmarketable equity securities
Debt securities
Others¥ 19,10916298
30¥ 14,692
16304
33$ 187,343
157
2,922
294

Total

¥ 19,453¥ 15,045$ 190,716- 12 -

The cost and aggregate fair value of the securities classified as available for sale at March 31, 2014 and 2013, wereas follows:
Millions of Yen
Unrealized
Unrealized
Gains
LossesMarch 31, 2014

Cost

Securities classified as available for sale:
Equity securities
Debt securities
Others¥ 5,143300
24¥ 14,177

Total¥ 5,467

Securities classified as available for sale:
Equity securities
Debt securities
Others
Total

Fair
Value

¥ 211
2

¥ 19,109298
30¥ 14,183¥ 213¥ 19,437¥ 4,954
300
33

¥

9,884
4

¥ 146

¥ 14,692
304
33¥ 5,287

¥

9,888

¥ 146

¥ 15,029

6

March 31, 2013

March 31, 2014

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
Losses

Cost

Securities classified as available for sale:
Equity securities
Debt securities
Others$ 50,422
2,942
235$ 138,990

Total$ 53,599$ 139,049

59

Fair
Value

$ 2,069
20$ 187,343
2,922
294

$ 2,089$ 190,559

The proceeds from sales of available-for-sale securities for the year ended March 31, 2014, were ¥28 million($275 thousand). The gross realized gains on these sales, computed on a moving-average cost basis, for the year
ended March 31, 2014, were ¥17 million ($167 thousand).
The impairment loss on available-for-sale equity securities for the year ended March 31, 2013, was ¥27 million.
4.

INVENTORIESInventories at March 31, 2014 and 2013, consisted of the following:
Millions of Yen
2014
2013
Finished products
Work in process
Raw materials and supplies

¥

Total

¥ 25,375- 13 -

7,862
6,667
10,846

¥

6,592
4,628
9,536

¥ 20,756

Thousands of
U.S. Dollars
2014$

77,07865,363
106,334$ 248,775

5.

LONG-LIVED ASSETS
The total loss on impairment of long-lived assets at March 31, 2014 and 2013, amounted to ¥28 million($275 thousand) and ¥181 million, respectively. The total loss at March 31, 2013, resulted from a write-down ofbuildings and land because the Group decided to sell out of these assets in the future, and thus the recoverable
amount was measured at its net selling value.

6.

RETIREMENT AND PENSION PLANS
The Company and its certain subsidiaries have severance payment plans for employees, directors, and Audit &Supervisory Board members.
Under most circumstances, employees terminating their employment are entitled to retirement benefits determinedbased on the rate of pay at the time of termination, years of service, and certain other factors. Such retirement
benefits are given in the form of a lump-sum severance payment from the Company or from certain subsidiaries andannuity payments from the Company, certain subsidiaries, or a trustee. Employees of the Company or certain
subsidiaries are entitled to larger payments if the termination is involuntary, by retirement at the mandatory
retirement age, by death, or by voluntary retirement at certain specific ages prior to the mandatory retirement age.
Year Ended March 31, 2014
(1) The changes in defined benefit obligation for the year ended March 31, 2014, were as follows:
Millions of Yen

Thousands of
U.S. Dollars

Balance at beginning of year
Current service cost
Interest cost
Actuarial losses
Benefits paid
Others¥ 3,310237
3550(204 )
150$ 32,451
2,324
343
490
(2,000 )1,471

Balance at end of year

¥ 3,578$ 35,079(2) The changes in plan assets for the year ended March 31, 2014, were as follows:
Millions of Yen

Thousands of
U.S. Dollars

Balance at beginning of year
Expected return on plan assets
Actuarial gains
Contributions from the employer
Benefits paid
Others

¥ 886
10
24
44
(65 )
68

$ 8,68698
235
431(637 )
667

Balance at end of year

¥ 967

$ 9,480- 14 -

(3) Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined
benefit obligation and plan assets as of March 31, 2014
Millions of Yen

Thousands of
U.S. Dollars

Unfunded defined benefit obligation¥ 1,578(967 )
611
2,000$ 15,471(9,480 )5,991
19,607Net liability for defined benefit obligation¥ 2,611$ 25,598

Millions of Yen

Thousands of
U.S. Dollars

Liability for retirement benefits¥ 2,611$ 25,598

Net liability for defined benefit obligation¥ 2,611$ 25,598

Funded defined benefit obligation
Plan assets(4) The components of net periodic benefit costs for the year ended March 31, 2014, were as follows:
Millions of Yen

Thousands of
U.S. Dollars

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial losses
Others

¥ 237
35
(10 )
46
75

$ 2,324
343
(98 )
451
735

Net periodic benefit costs¥ 383$ 3,755(5) Accumulated other comprehensive income on defined retirement benefit plans as of March 31, 2014
Millions of Yen

Thousands of
U.S. Dollars

Unrecognized actuarial losses¥ 270$ 2,647

Total

¥ 270

$ 2,647- 15 -

(6) Plan assets as of March 31, 2014a.

Components of plan assets
Plan assets consisted of the following:b.

Debt investments
Equity investments
Cash and cash equivalents
Others

56 %
13
2
29

Total

100 %

Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term rates of return which
are expected currently and in the future from the various components of the plan assets.

(7) Assumptions used for the year ended March 31, 2014, were set forth as follows:
Discount rate
Expected rate of return on plan assets

0.5%–3.3%
2%(8) Defined contribution plan
The required contribution amount of the Group for the year ended March 31, 2014, was ¥246 million($2,412 thousand).
Year Ended March 31, 2013
The liability for retirement benefits at March 31, 2013, consisted of the following:
Millions of Yen
Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial losses¥ 3,310(886 )(265 )Net liability¥ 2,159

The components of net periodic benefit costs for the year ended March 31, 2013, are as follows:
Millions of Yen
Service cost
Interest cost
Recognized actuarial losses

¥ 332
37
21

Net periodic benefit costs¥ 390- 16 -

Assumptions used for the year ended March 31, 2013, are set forth as follows:
Discount rate
Expected rate of return on plan assets
Recognition period of actuarial gain/loss

0.5%–3.5%
0.0%
5 years

The liability for retirement benefits at March 31, 2014 and 2013, for directors and Audit & Supervisory Board
members was ¥102 million ($996 thousand) and ¥102 million, respectively.
7.

EQUITYJapanese companies are subject to the Companies Act of Japan (the "Companies Act"). The significant provisions in
the Companies Act that affect financial and accounting matters are summarized below:a.

Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to theyear-end dividend upon resolution at the shareholders' meeting. For companies that meet certain criteria, suchas (1) having a board of directors, (2) having independent auditors, (3) having an Audit & Supervisory Board,and (4) the term of service of the directors is prescribed as one year rather than two years of normal term by its
articles of incorporation, the board of directors may declare dividends (except for dividends in kind) at any
time during the fiscal year if the company has prescribed so in its articles of incorporation. The Company
meets all of the above criteria.
The Companies Act permits companies to distribute dividends in kind (noncash assets) to shareholders subject
to certain limitations and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the board of directors if thearticles of incorporation of the company so stipulate. The Companies Act provides certain limitations on theamounts available for dividends or the purchase of treasury stock. The limitation is defined as the amountavailable for distribution to the shareholders, but the amount of net assets after dividends must be maintained
at no less than ¥3 million.

b.

Increases/Decreases and Transfer of Common Stock, Reserve, and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve(a component of retained earnings) or as additional paid-in capital (a component of capital surplus), dependingon the equity account charged upon the payment of such dividends, until the total of the aggregate amount of
the legal reserve and additional paid-in capital equals 25% of the amount of common stock. Under theCompanies Act, the total amount of additional paid-in capital and legal reserve may be reversed without
limitation. The Companies Act also provides that common stock, legal reserve, additional paid-in capital, othercapital surplus, and retained earnings can be transferred among the accounts under certain conditions upon
resolution of the shareholders.

c.

Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stockby resolution of the board of directors. The amount of treasury stock purchased cannot exceed the amountavailable for distribution to the shareholders which is determined by a specific formula.

- 17 -

Under the Companies Act, stock acquisition rights are presented as a separate component of equity.
The Companies Act also provides that companies can purchase both treasury stock acquisition rights andtreasury stock. Such treasury stock acquisition rights are presented as a separate component of equity or
deducted directly from stock acquisition rights.
8.

INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income taxes that, in theaggregate, resulted in a normal effective statutory tax rate of approximately 37.8% for the years ended March 31,
2014 and 2013.
The tax effects of significant temporary differences and tax loss carryforwards that resulted in deferred tax assets
and liabilities at March 31, 2014 and 2013, are as follows:
Millions of Yen
2014
2013
Deferred tax assets:
Inventories
Pension and severance costs
Tax loss carryforwards
Accrued expenses
Other
Less valuation allowance

¥

Total
Deferred tax liabilities:
Unrealized gain on available-for-sale securities
Other
Total
Net deferred tax assets

879
770
1,866
731
1,882
(2,939 )

¥

909
723
1,906
723
1,816
(2,866 )Thousands of
U.S. Dollars
2014
$

8,618
7,549
18,294
7,167
18,451(28,814 )

3,189

3,211

31,265(4,807 )(47 )(3,379 )(46 )(47,127 )(461 )(4,854 )(3,425 )(47,588 )¥ (1,665 )¥ (214 )$ (16,323 )Deferred tax assets and liabilities were included in the consolidated balance sheet as follows:
Millions of Yen
2014
2013

Thousands of
U.S. Dollars
2014

Current assets—Deferred tax assets
Investments and other assets—Deferred tax assets
Current liabilities—Other current liabilities
Long-term liabilities—Deferred tax liabilities¥ 1,866300(35 )(3,796 )¥ 1,775297(27 )(2,259 )$ 18,294
2,941(342 )(37,216 )Net deferred tax assets¥ (1,665 )¥ (214 )$ (16,323 )- 18 -

A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in theaccompanying consolidated statement of income for the year ended March 31, 2014, with the corresponding figuresfor 2013 is as follows:
2014

2013

Normal effective statutory tax rate
Tax credit for research expenses
Increase in valuation allowance
Effect of tax rate reduction
Other—net

37.8 %
(3.9)
1.0
1.3
(4.3)

37.8 %(4.1)
14.4

Actual effective tax rate

31.9 %

44.8 %(3.3)

At March 31, 2014, certain subsidiaries have tax loss carryforwards aggregating approximately ¥7,262 million($71,198 thousand) that are available to be offset against taxable income of such subsidiaries in future years. Thesetax loss carryforwards, if not utilized, will expire as follows:Year Ending
March 31

Millions of Yen

2016
2017
2018
2019
2020 and thereafter

¥

41
117
105
55
6,944

Total

¥ 7,262

Thousands of
U.S. Dollars
$

401
1,148
1,032
539
68,078$ 71,198

New tax reform laws enacted in 2014 in Japan changed the normal effective statutory tax rate for the fiscal year
beginning on or after April 1, 2014, from approximately 37.8% to 35.4%. The effect of this change was to decreasedeferred tax assets in the consolidated balance sheet as of March 31, 2014, by ¥107 million ($1,049 thousand) andto increase income taxes—deferred in the consolidated statement of income for the year then ended by ¥107 million($1,049 thousand).
9.

R&D COSTS
R&D costs charged to income were ¥5,797 million ($56,833 thousand) and ¥5,323 million for the years ended
March 31, 2014 and 2013, respectively.

10.

LEASES
The minimum rental commitments under noncancelable operating leases at March 31, 2014 and 2013, were as
follows:
Millions of Yen
2014
2013

Thousands of
U.S. Dollars
2014

Due within one year
Due after one year

¥ 226
452

¥ 239
644

$ 2,216
4,431

Total

¥ 678

¥ 883

$ 6,647- 19 -

11.

FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group uses financial instruments based on its capital expenditure plan. Cash surpluses, if any, are invested
in low-risk financial assets. Derivatives are used, not for speculative purposes, but to manage exposure tofinancial risks as described in (2) below.
(2) Nature and Extent of Risks Arising from Financial Instruments
Receivables such as trade notes and trade accounts are exposed to customer credit risk. Although receivables
in foreign currencies are exposed to the risk of fluctuation in foreign currency exchange rates, the position, netof payables in foreign currencies, is hedged by using forward foreign currency contracts. Marketable andinvestment securities, mainly debt securities and equity instruments of customers and suppliers of the Group,
are exposed to the risk of market price fluctuations.
All payment terms of payables, such as trade accounts, are within one year. Although payables in foreign
currencies are exposed to the risk of fluctuation in foreign currency exchange rates, those risks are netted
against the balance of receivables denominated in the same foreign currency, as noted above.
Derivatives mainly include forward foreign currency contracts that are used to manage exposure to risk ofchanges in foreign currency exchange rates of receivables and payables. Please see Note 12 for more details
about derivatives.
(3) Risk Management for Financial Instruments
Credit risk management
Credit risk is the risk of economic loss arising from a counterparty's failure to repay or service debt according
to the contractual terms. The Group manages its credit risk from receivables on the basis of internal guidelines,
which include monitoring of payment terms and balances of major customers by each business administration
department to identify the default risk of customers at an early stage. With respect to debt securities, the Groupmanages its exposure to credit risk by limiting its funding to high-credit rating bonds in accordance with in its
internal guidelines. Please see Note 12 for information about derivatives.
The maximum credit risk exposure of financial assets is limited to their carrying amounts as of March 31,
2014.
Market risk management (foreign exchange risk and interest rate risk)
Foreign currency trade receivables and payables are exposed to fluctuations in foreign currency exchange
rates. Such foreign exchange risk is hedged occasionally by forward foreign currency contracts.
Marketable and investment securities are managed by monitoring the market values and financial position ofissuers on a regular basis.
The basic principles of derivative transactions have been approved by the chief financial officer based oninternal guidelines that prescribe the authority and the limit for each transaction by the corporate treasury
department. Reconciliation of the transaction and balances with customers is made and the transaction data isreported to the chief financial officer on a monthly basis.

- 20 -

Liquidity risk management
Liquidity risk comprises the risk that the Group cannot meet its contractual obligations in full on maturity
dates. The Group manages its liquidity risk by holding adequate volumes of liquid assets along with adequate
financial planning by the corporate treasury department.
(4) Concentration of Credit Risk
As of March 31, 2014, 20.8% of total receivables are from specific major customers of the Group.
(5) Fair Values of Financial Instruments
Fair values of financial instruments are based on quoted prices in active markets. If quoted prices are notavailable, other rational valuation techniques are used instead.
(a) Fair value of financial instruments
Carrying
AmountMarch 31, 2014

Millions of Yen
Fair Value

Cash and cash equivalents
Notes and accounts receivables
Allowance for doubtful receivables
Notes and accounts receivables (net)
Short-term investments andinvestment securities¥ 19,081
15,007(118 )
14,889¥ 19,081

19,637

19,637

Total¥ 53,607¥ 53,607

Accounts payable

¥

8,905

¥

8,905

Total

¥

8,905

¥

8,905

Derivatives

¥

(8 )

¥

(8 )

14,889March 31, 2013
Cash and cash equivalents
Notes and accounts receivables
Allowance for doubtful receivables
Notes and accounts receivables (net)
Investment securities¥ 16,138
12,878(90 )
12,78815,028¥ 16,138

Total¥ 43,954¥ 43,954

Accounts payable

¥

7,715

¥

7,715

Total

¥

7,715

¥

7,715

Derivatives

¥

(4 )

¥

(4 )

- 21 -

12,78815,028

Unrealized
Gain/LossCarryingAmountMarch 31, 2014

Thousands of U.S. Dollars
Unrealized
Fair Value
Gain/Loss

Cash and cash equivalents
Notes and accounts receivables
Allowance for doubtful receivables
Notes and accounts receivables (net)
Short-term investments andinvestment securities$ 187,069
147,127(1,157 )145,970$ 187,069

192,520

192,520

Total$ 525,559$ 525,559

Accounts payable$

87,304$87,304

Total$

87,304$87,304

Derivatives

$

(78 )

$

(78 )

145,970

Cash and Cash Equivalents
The carrying values of cash and cash equivalents approximate fair value because of their short maturities.
Notes and Accounts Receivables
The carrying values of notes and accounts receivables approximate fair value because of their short-term
settlement.
Short-Term Investments and Investment Securities
The fair values of short-term investments and investment securities are measured at the quoted market
price of the stock exchange for equity instruments and at the quoted price obtained from financial
institution for certain debt instruments. Fair value information for the short-term investments andinvestment securities by classification is included in Note 3.
Accounts Payable
The carrying values of accounts payable approximate fair value because of their short-term settlement.
Derivatives
Fair value information for derivatives is included in Note 12.
(b) Carrying amount of financial instruments whose fair value cannot be reliably determined

Investments in equity instruments that do nothave a quoted market price in an active market- 22 -

Millions of Yen
2014
2013
¥ 16

¥ 16

Thousands of
U.S. Dollars
2014
$ 157

(6) Maturity Analysis for Financial Assets and Securities with Contractual Maturities

Due in1 Yearor Less

March 31, 2014
Cash and cash equivalents
Short-term investments
Receivables
Investment securities—Corporate bonds¥ 19,078200
14,995

Total¥ 34,273

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

¥ 298
¥ 298

March 31, 2013
Cash and cash equivalents
Receivables
Investment securities—Corporate bonds¥ 16,133
12,878

Total¥ 29,011

Due in1 Yearor Less

March 31, 201412.

Cash and cash equivalents
Short-term investments
Receivables
Investment securities—Corporate bonds$ 187,039
1,961
147,010Total$ 336,010

¥ 304
¥ 304
Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years$ 2,922$ 2,922

DERIVATIVESThe Group enters into derivative contracts, including foreign currency forward contracts, to hedge foreign exchange
risk associated with certain assets and liabilities denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign currency exposures incorporated within the Group'sbusiness. Accordingly, market risk in these derivatives is basically offset by opposite movements in the value ofhedged assets or liabilities.
Because the counterparties to these derivatives are limited to major international financial institutions, the Group
does not anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies that regulate
the authorization and credit limit amount.

- 23 -

Derivative Transactions to Which Hedge Accounting Is Not Applied
Derivative transactions to which hedge accounting is not applied at March 31, 2014 and 2013, are as follows:

March 31, 2014

Contract
AmountMillions of Yen
Contract
AmountDue after
Fair
1 YearValue

Foreign currency forward contracts—
Selling Euro

¥ 1,071

¥(8 )

¥(8 )

¥ 1,345¥ (17 )¥ (17 )March 31, 2014

Contract
AmountThousands of U.S. Dollars
Contract
AmountDue after
Fair
Unrealized
1 YearValue
Gain/Loss

Foreign currency forward contracts—
Selling Euro

$ 10,500$ (78 )

Unrealized
Gain/Loss

March 31, 2013
Foreign currency forward contracts—
Selling Euro$ (78 )

The fair value of derivative transactions is measured at the quoted price obtained from financial institutions.
Derivative Transactions to Which Hedge Accounting Is Applied
Derivative transactions to which hedge accounting is applied at March 31, 2013, are as follows:

March 31, 2013
Foreign currency forward
contracts—Selling Swiss franc

Hedged Item
Forecast transactions

Millions of Yen
Contract
AmountContract
Due after
Amount1 Year

Fair
Value

¥ 460

¥ 13

The fair value of derivative transactions is measured at the quoted price obtained from financial institutions.
The contract or notional amounts of derivatives that are shown in the above table do not represent the amounts
exchanged by the parties and do not measure the Group's exposure to credit or market risk.
There are no derivative transactions to which hedge accounting is applied at March 31, 2014.

- 24 -

13.

COMPREHENSIVE INCOME
The components of other comprehensive income and loss for the years ended March 31, 2014 and 2013, were as
follows:
Thousands of
U.S. Dollars
2014

Millions of Yen
2014
2013
Unrealized gain on available-for-sale securities:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Deferred (loss) gain on derivatives under hedge
accounting:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal
Foreign currency translation adjustments:
Adjustments arising during the year
Amount before income tax effect
Income tax effectTotal
Total other comprehensive income
14.

¥ 4,244(17 )
4,227(1,429 )¥ 3,67527
3,702(1,221 )$ 41,608(167 )
41,441(14,011 )¥ 2,798¥ 2,481$ 27,430

¥

¥

(13 )
(13 )
5

¥

(8 )

¥

¥

844
844

¥

844

¥ 3,634

13$(127 )(127 )
49

8

$

(78 )

¥

732
732

$

8,275
8,275

¥

732

$

8,275

13
(5 )

¥ 3,221$ 35,627

SUBSEQUENT EVENT
The following appropriation of retained earnings at March 31, 2014, was approved at the board of directors'
meeting held on May 20, 2014:

Year-end cash dividends, ¥30 ($0.3) per share- 25 -

Millions of Yen

Thousands of
U.S. Dollars¥ 640$ 6,275

15.

SEGMENT INFORMATION
Under ASBJ Statement No. 17, "Accounting Standard for Segment Information Disclosures," and ASBJ Guidance
No. 20, "Guidance on Accounting Standard for Segment Information Disclosures," an entity is required to reportfinancial and descriptive information about its reportable segments. Reportable segments are operating segments oraggregations of operating segments that meet specified criteria. Operating segments are components of an entity
about which separate financial information is available, and such information is evaluated regularly by the chief
operating decision maker in deciding how to allocate resources and in assessing performance. Generally, segment
information is required to be reported on the same basis as is used internally for evaluating operating segment
performance and deciding how to allocate resources to operating segments.
(1) Description of Reportable Segments
The Group is primarily engaged in the manufacture, development, and sale of visual display systems andrelated products. The Group consists of this single industry, and therefore, it is not required to disclose separate
financial information by segment.
(2) Information about Products and Services

Monitors for
Computer Use
Sales to external customers

Sales to external customers

Millions of Yen
2014
Amusement
Monitors
Other¥ 41,620¥ 21,966

Monitors for
Computer Use

Millions of Yen
2013
Amusement
Monitors
Other¥ 30,690

Monitors for
Computer Use
Sales to external customers$ 408,039¥ 18,074¥ 10,056¥ 9,506

Thousands of U.S. Dollars
2014
Amusement
Monitors
Other$ 215,353$ 98,588

Total¥ 73,642

Total¥ 58,270

Total$ 721,980(3) Information about Geographical Areas(a) Sales

Japan

EuropeMillions of Yen
2014
North
America¥ 45,245¥ 22,362¥ 3,852- 26 -

Other

Total

¥ 2,183¥ 73,642

JapanEuropeMillions of Yen
2013
North
America¥ 39,055¥ 14,297¥ 3,038¥ 1,880¥ 58,270

Japan

EuropeThousands of U.S. Dollars
2014
North
America

Other

Total

$ 443,578$ 219,235$ 37,765$ 21,402$ 721,980

Other

Total

Note: Sales are classified by country or region based on the location of customers.
(b) Property, plant, and equipment
The amount of property, plant, and equipment for Japan exceeds 90% of the amount of property, plant,
and equipment in the consolidated balance sheet, and thus, there is no requirement to disclose suchinformation.
(4) Information about Major Customers

Name of Customer

Millions of Yen
2014
Sales

JT Japan Technicals¥ 26,430

Name of Customer

Millions of Yen
2013
Sales

JT Japan Technicals¥ 23,123

Name of Customer

Thousands of
U.S. Dollars
2014
Sales

JT Japan Technicals$ 259,118******- 27 -